5 Avoiding Mistake During Recession

Surviving recession is all about making the right financial decision. The pressure to do well with your finance will always be there during recession because the current economy is so volatile that a single mistake might cost all your finance.

It is imperative to avoid financial trouble during recession mainly because getting back on track through various financial help is almost impossible. Although there are financial institutions that will be there to help you with your finances, the repercussion in paying back the loan would be too devastating for your future finance.

Aside from a very dangerous loan during recession, there are other thing that you should NEVER do to ensure you financial stability not only today but also tomorrow. Let’s me know something happened to us, based on the general experiences:

Mistake #1 : Rushing into stocks prematurely

The stock market could be considered a gamble. This is especially true if you do not learn enough about the volatile industry which could create millions and bankrupt a single person in just one day. Some see stocks as the window opportunity since they can easily harness the industry until they can earn thousands or even millions. Don’t, in any way, jump into investment if you don’t know the advantage and disadvantage of going into stocks. All your finance might end up with nothing if you rush too fast in this money making scheme.

Mistake #2: Rush retail on Products

rush retail is a concept based on purchasing product one by one instead of buying in bulk. This is often done by consumers who are too afraid to spend a little bit more to save a lot of money. Although retail will not force you to spend too much, the accumulated increase in pricing of the retail product could have been used to purchase other product if you consider wholesaling.

Mistake #3: having more than two credit card

One credit card is a good thing. A couple of credit card are already pushing your financial standing but three or more credit cards are already way pushing it. each of these credit card comes with an interest rate. Even though you don’t use some of the credit card, you will still be forced to pay for the annual fee (administration fee).

This could snowball into a financial burden if you are not pay them soon. This is a likely scenario since you are not aware that you do have a lot of credit cards to use and only get them out if you want to earn some points with the use of a particular card.

Mistake #4: Stretching loan Payment

This is usually the reaction for those who doesn’t have the financial status to pay for the loaned amount. However, if you do have the money to pay for your current terms, never negotiate to stretch your payment terms just because you want to save as much money as you can for recession. You will be surprised that most financial institution are OK with this agreement. they allow this one because they wanted to earn more from you and stretching your payment terms will give them the ability to increase your monthly due to them.

Mistake #5: Cashing out your individual Retirement Plan

No matter how desperate you are with our financial, you should never, in any way cash out your individual retirement account because early cash out of your retirement fund will really cost you. Aside from income tax that may slash a huge amount from your retirement account, the penalty for early cash out will be implemented. Recession iis not forever, so you still have to prepare for your retirement as much as possible.

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